The yen continues to strengthen

25.11.2015

On Wednesday afternoon, the USD/JPY pair is trading lower after the publication of the "minutes" of the October meeting of the Bank of Japan.

The Japanese yen continues to rise on Wednesday in tandem with the US dollar. The current quote in the instrument is 122.31. A fall in the USD/JPY pair has been observed for the third consecutive day, and the short-term descending channel started on November 19.

This morning, a report of the October meeting of the Bank of Japan was published. The text says that the inflation is slowed by facts of bridging the gap between theoretical and practical production volumes in the country. It is unrealistic to increase the actual production parameters for such a sluggish domestic and external demand. The members of the BoJ once again drew attention to the need to monitor the rate of growth of wages in Japan. These statistics can be a signal of the labor market dynamics as a whole.

With all that the degree of tension about the risks of an economic slowdown in China is clearly reduced. This is a good signal.

According to the forecast presented today by the Moody's rating agency, in 2016 Japan's GDP will grow in the range of 0.5 to 1.5%. The main support for the economy, according to the agency, will come from local corporations. In the layered position are the companies engaged in the oil and gas sector and the steel industry. Enterprises will continue to decline in the expenditure side of budgets in order to optimize the financial statements.

Apparently, the Japanese economy will have another difficult year, but if it will be accompanied by a slight economic growth, within 10-18 months the country will be able to report on new financial victories.

RoboForex Analytical Department

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